Overview
Flex fiscal Q2 net sales rise 4% to $6.8 bln, beating analyst expectations
Adjusted EPS for fiscal Q2 at $0.79, surpassing analyst estimates
Company raises full-year guidance due to strong demand in Power and Cloud businesses
Outlook
Flex raises full-year net sales guidance to $26.7 bln to $27.3 bln
Company expects Q3 net sales between $6.65 bln and $6.95 bln
Flex projects full-year adjusted EPS between $3.09 and $3.17
Result Drivers
DATA CENTER DEMAND - Strong demand in Power and Cloud businesses driven by data center needs, contributing to sales growth
PORTFOLIO SHIFT - Company is shifting towards higher-margin businesses, enhancing data center market position
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $6.80 bln | $6.67 bln (7 Analysts) |
Q2 Adjusted EPS | Beat | $0.79 | $0.75 (8 Analysts) |
Q2 EPS | $0.52 | ||
Q2 Net Income | $199 mln | ||
Q2 Gross Profit | $614 mln | ||
Q2 Operating Income | $296 mln | ||
Q2 Pretax Profit | $262 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Flex Ltd is $62.50, about 2.8% below its October 28 closing price of $64.26
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nPn5HXWGXa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)